By ForexAbode
EUR/USD had a very strong upward jump during last week when the pair moved up from 1.2755 to 1.3207 i.e. 452 pips in a matter of a single day. This move broke above the 200-day moving average resistance but could not sustain and the price action fell below this resistance once again.
EUR/USD and 200-day moving average
As we see that a decisive break over 1.3121 is needed once again to indicate that this resistance has been overcome.
Not only the 200-day moving average but we may need to keep an eye on the daily Ichimoku cloud also. The last week’s resistance also came just below the upper edge level of the daily Ichimoku cloud. Please note that the price action is no more within the cloud but fell below the cloud once again.
EUR/USD with daily Ichimoku cloud
While the above chart indicates that any decisive break over 1.3230 will be the end of this resistance but the story does not end there. Quite interestingly the resistance was also below the weekly Ichimoku cloud and till a break of 1.3300 resistance takes place we need to consider any upward gains just as a consolidation and not reversal of any kind.
EUR/USD with weekly Ichimoku cloud
Connect to the Author at Google +Himanshu Jain or at ForexAbode.com.